Working Paper Series,
Uppsala University, Department of Economics

Abstract: This paper estimates technology growth using several variants of the Hall (1988, 1990) method on data for Swedish two-digit manufacturing industries. More specifically, I first apply and evaluate two different approaches to control for varying factor utilization developed by Basu et al. (1998) and Burnside et al. (1995). Second, I propose a generalization of the latter specification. Finally, the cyclical behavior of the resulting technology measure is studied and the responses of hours and output to a technology shock are estimated using a variant of the standard VAR-approach. The main finding is that a positive technology shock has, on impact, a contractionary effect on hours and non-expansionary effect on output. This finding is inconsistent with the predictions of the standard real business cycle model.

Keywords: technological change; cyclical factor utilization; business fluctuations; panel data; manufacturing

JEL-codes: C33; D24; E32; L60

62 pages, December 5, 2000

Download statistics

Published as

Mikael Carlsson, (2003), 'Measures of Technology and the Short-Run Responses to Technology Shocks', Scandinavian Journal of Economics, vol 105, no 4, pages 555-579

• Uppsala University, Department of Economics
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Ulrika Öjdeby ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:uunewp:2000_020This page generated on 2024-09-13 22:17:36.